RE:Anyone have an opinion on the GCL earnings?The results came in below street estimates. Analysts were calling for $11 million in adjusted EBITDA. So a small disappointment on that end. Debt repayment was strong, however. And turnaround is still very much alive, not to mention the outlook is decent.
The shares trade at 9x EV/EBITDA on 2016 EBITDA. On next year's numbers, they look to be trading at 8x. So valuation looks reasonable. Q1 results are seasonally weak however (not sure if all investors know that).
So I don't think these results were spectacular. But valuation is reasonable and turnaround story is very much intact. If I'm a holder of the shares, I would continue holding, maybe trim if there's another rally. If I want to buy more, I would wait to be more opportunistic, some sellers will trim into this rally.